Close Your web browser is out of date. Updating your browser will improve how you can view and use this website. Find out how to do this

Menu

Direct ISA

Tax free. And easy.

Save up to £20,000 without paying a penny in tax on the interest

Direct ISA: facts and figures

  • Rate 0.90% tax-free/AER
  • Access No notice, no penalty
  • Tax Tax-free

Suitable for savers who:

  • want to earn tax-free interest
  • are happy to use their account online or by phone
  • have not invested in a cash ISA in the 2019/20 tax year

Not for savers who:

  • want to invest their full allowance in a stocks and shares ISA and/or an innovative finance ISA
  • prefer to use their account at a branch or by post
  • have invested or plan to invest in a cash ISA from another provider this tax year
  • want to transfer in ISA investments from another provider
  • want a flexible ISA

New customers

Summary box

Account name

NS&I Direct ISA

What is the interest rate?

0.90% tax-free/AER

We calculate the interest daily and add it to your account once a year on 6 April.

Can NS&I change the interest rate?

Yes - the rate is variable so we can change it up or down from time to time, for example when the Bank of England base rate changes or when rates in the general savings market change. See the customer agreement (terms and conditions) for more details.

We’ll give advance notice of any rate changes by publishing adverts in a range of newspapers and by updating our website. When the rate is going down, we’ll also contact you personally in advance to let you know.

What would the estimated balance be after 12 months based on a £1,000 deposit?

A £1,000 deposit would be worth £1,009.00 after 12 months, if the current interest rate stayed the same during the 12 months.

This is an illustration only, so it doesn’t take into account your individual circumstances. It assumes that you don’t make any withdrawals or additional deposits during the year.

How do I open and manage my account?

Our Direct ISA is a cash ISA for customers aged 16 or over who are resident in the UK for tax purposes. You can open an account in your own name only

You can:

  • apply for, and manage, a Direct ISA online or by phone only
  • open an account with at least £1, paid by a debit card in your own name, issued by a UK bank
  • pay in up to £20,000 in the 2019/20 tax year

If you want to switch to a Direct ISA from another NS&I account or investment:

Download a switching form

Call us

Can I withdraw money?

Yes, you can take out money online or by phone with no notice or penalty. You just need to keep a balance of at least £1 to keep your account open.

Our Direct ISA is not a flexible ISA. This means that all your deposits within the tax year will count towards your allowance, whether or not you make any withdrawals.

Additional information

The interest you earn is tax-free, so it won’t count towards your Personal Savings Allowance.

Find out more about tax and savings

Bear in mind that the tax advantages you receive from ISAs depend on your individual circumstances and may change in the future.

We’ll send you an electronic statement in April each year, showing all your transactions and interest. Or you can receive your statements by post if you prefer

We don’t currently accept transfers from other providers into our Direct ISA

Definitions

Tax-free means the interest is exempt from UK Income Tax.

AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.

  • Power of Attorney - applying on behalf of someone else

    Want to apply on behalf of someone else under a Power of Attorney or Court of Protection Order?

    If you have already registered your authority with us and have registered for our online service, you can apply for an account online. Just click the ‘Apply now’ button at the bottom of the screen to get started.

    If you haven’t, you'll need to:

    1. register your authority with us first (see our guide below to find out how)
    2. register for the online service
    3. then you can log in and apply for an account online

    Or you can apply by post using the application form below and register your authority at the same time by enclosing the original Power of Attorney or confirmation of your appointment as a Deputy, or a certified copy (see our guide below).

    Our guide to acting on behalf of someone else

    Direct ISA Power of Attorney application form

    Please note that if you have restricted authority, or must act jointly with another appointed individual, you can only apply for the account by post.

Existing customers

Using your account

You can look after your Direct ISA online and by phone. You’ll be able to log in or call us to check your balance, review your transactions and change your personal details. We’ll send you an annual statement every April – you can choose to go paperless or get it by post.

  • Pay money in

    Pay in by bank transfer, standing order or with your debit card. All your deposits must be from a UK bank account in your own name.

    By bank transfer and standing order

    Please note that bank transfers and standing orders are not available for Direct ISA inherited allowance accounts.

    Give the following details to your bank and tell them how much to transfer and how often. You’ll normally be able to do this online, by phone or in a branch, depending on your bank.

    Reference: You must enter your Direct ISA account number (not your NS&I number) as the reference. You can find your account number on your statement or by logging into our online service.
     

    Make sure you enter your Direct ISA account number correctly. Don't add any other information in the reference field apart from your account number.

    Payee name: NS&I
    Account number: 11994808
    Sort code: 08 31 20

    Or

    Print and complete a standing order form and give it to your bank

    To cancel, contact your bank – not NS&I.

    Any deposits that would take you over the annual subscription limit will be automatically refunded in full to your bank account, so you may want to check before making the deposit.

    Online or by phone

    Log in or call us at any time with your debit card details.

    Please note, we don’t accept credit card payments.

    Call us

New customers
Apply now
Existing customers
Top up by bank transfer Top up by debit card
Back

Top up by
bank transfer

You can top up your account by bank transfer, for more information, download our guide.

Download guide

Please note that bank transfers and standing orders are not available for Direct ISA inherited allowance accounts.

When buying by bank transfer, you are confirming that your bank account is a UK account in your name.

Give the following details to your bank
Reference: You must enter your Direct ISA account number (not your NS&I number) as the reference. You can find your account number on your statement or by logging into our online service.

Make sure you enter your Direct ISA account number correctly. Don't add any other information in the reference field apart from your account number.

Payee name: NS&I
Account number: 11994808
Sort code: 08 31 20